In this article I will feature two basic materials stocks that have seen intensive insider buying during the last 30 days. Intensive insider buying can be defined by the following three criteria:

The stock is purchased by three or more insiders within one month.

The stock is sold by no insiders in the month of intensive purchasing.

At least two purchasers increase their holdings by more than 10%.

1. Emerge Energy Services LP (NYSE:EMES) focuses on owning, operation, acquisition, and development of energy service assets in the United States.

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Insider buying by insider (last 30 days)

Ted Beneski purchased 60,000 shares on May 14 pursuant to the initial public offering. Ted Beneski currently controls 10,636,117 shares or 45.8% of the company. Ted Beneski is a Director of Emerge Energy Services GP LLC, the general partner of Emerge Energy Services LP.

Warren Bonham purchased 10,000 shares on May 14 pursuant to the initial public offering. Warren Bonham currently holds 10,000 shares or less than 0.1% of the company. Warren Bonham is the Vice President and a Director of Emerge Energy Services GP LLC, the general partner of Emerge Energy Services LP.

Robert Lane purchased 1,500 shares on May 14 pursuant to the initial public offering. Robert Lane currently holds 1,500 shares or less than 0.1% of the company. Robert Lane is the Chief Financial Officer of Emerge Energy Services GP LLC, the general partner of Emerge Energy Services LP.

Richard Shearer purchased 15,000 shares on May 14 pursuant to the initial public offering. Richard Shearer currently holds 15,000 shares or less than 0.1% of the company. Richard Shearer is the Chief Executive Officer of Emerge Energy Services GP LLC, the general partner of Emerge Energy Services LP.

Over the last few years there has been a significant overall increase in both horizontal drilling activity and related hydraulic fracturing services, which has resulted in a corresponding increase in demand for frac sand and other proppants. According to the PropTester Report, the volume of global demand for frac sand increased at a compound annual growth rate of approximately 28.5% from 2008 to 2012. The PropTester Report estimates the 2012 global frac sand market consumption (and sand substrate used for resin coating) at approximately 31.8 million tons, an increase of approximately 3.2 million tons (or 11.2%) compared to approximately 28.6 million tons in 2011. According to the Freedonia Report, North American proppant demand by weight is projected to continue growing by 7.2% per year through 2016.

Competition

Emerge Energy Services believes that the five leading producers of frac sand in 2012 were Unimin Corporation, Fairmount Minerals, Ltd., U.S. Silica Holdings, Inc. (NYSE:SLCA), Preferred Sands, LLC and SSS. Excluding SSS, Emerge Energy Services believes this group represented in excess of 55% of total industry production in 2012.

Emerge Energy Services is the only transmix processor operating in the Dallas-Fort Worth and Birmingham markets. In general, transmix shipped by truck is less competitive than transmix shipped by pipeline, and these logistical considerations typically lead a transmix producer to the conclusion that there is only one appropriate location for processing its transmix in a geographic region.

My analysis

The stock started trading on May 9 after the IPO. There have been four different insiders buying the shares and there have not been any insiders selling the shares since the IPO. The stock is trading at a P/E ratio of 12.72. The company expects that its aggregate distributions for the twelve months ending March 31, 2014 will be approximately $65.0 million, or $2.80 per common unit. I have a cautiously bullish bias for the stock currently based on the intensive insider buying and the company outlook.

Dundee Corporation purchased 265,200 shares on April 23 - May 17 and currently holds 30,859,807 shares or 24.6% of the company.

Adrian Goldstone purchased 10,000 shares on May 17 and currently holds 10,000 shares or less than 0.1% of the company. Adrian Goldstone is Executive Vice President, Sustainable Business Development.

Donald Young purchased 2,000 shares on May 17 and currently holds 17,500 shares or less than 0.1% of the company. Donald Young serves as a director of the company.

Insider buying by calendar month

Here is a table of Dundee's insider trading activity by calendar month.

Month

Insider buying / shares

Insider selling / shares

May 2013

242,200

0

April 2013

249,600

55,000

March 2013

375,600

62,296

February 2013

748,852

0

January 2013

519,900

40,000

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There have been 2,136,152 shares purchased and 157,296 shares sold this year.

Financials

The company reported the first-quarter financial results on May 8 with the following highlights:

Revenue

$88.0 million

Net income

$0.7 million

Cash and investments

$157.2 million

Debt

$80.5 million

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Outlook

The company's guidance for 2013 is as follows:

Gold production

150,000-173,000 ounces

Copper production

45.5-49.0 million pounds

Zinc production

12.0-14.5 million pounds

Silver production

620,000-723,000 ounces

Cash cost/ounce of gold sold, net of by-product credits ($)

365-385

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Competition

Dundee faces competition from other mining companies in connection with the acquisition of properties producing, or capable of producing, precious and base metals, as well as the ultimate sale of its production. Many of these companies have greater financial resources, operational experience and technical capabilities than Dundee. As a result of this competition, there can be no assurance that Dundee will be able to acquire or maintain attractive operations or sell its production on economically acceptable terms. Consequently, Dundee's business, results of operations and financial condition could be adversely affected.

My analysis

There have been three different insiders buying the shares and there have not been any insiders selling the shares during the last 30 days. There are eight analyst buy ratings, zero neutral ratings and zero sell ratings, with an average target price of $10.90. The stock is trading at a P/E ratio of 11.38 and a forward P/E ratio of 4.84. I have a cautiously bullish bias for the stock currently based on the intensive insider buying and the analyst target prices.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in OTCPK:DPMLF over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.